Hong Kong Company Registration for Indian Businesses
Hong Kong is a premier global business hub, offering a strategic gateway to Mainland China and international markets. For Indian entrepreneurs, it presents an ideal environment due to its ease of doing business, robust legal system, and attractive tax regime.
The registration process is streamlined, allowing for 100% foreign ownership without the need for a local partner. This makes it highly accessible for Indian startups and established businesses looking to expand.
Key Benefits of Registering in Hong Kong
- Strategic Location: Acts as a bridge to China and other Asian markets.
- Low Tax Regime: Territorial tax system with low corporate tax rates (8.25% - 16.5%) and no tax on foreign-sourced income.
- Ease of Doing Business: consistently ranked among the top globally for business friendliness.
- 100% Foreign Ownership: Complete control over your business with no requirement for local shareholding.
- Strong Legal Framework: Based on English Common Law, providing a familiar and secure legal environment.
Types of Business Structures
Choosing the right structure is crucial:
- Private Limited Company (Ltd): The most popular choice. It is a separate legal entity, offers limited liability, and allows 100% foreign ownership.
- Branch Office: An extension of the parent company. The parent company is liable for all debts.
- Representative Office: Suitable for market research and liaison activities. Cannot engage in profit-generating activities.
Requirements for Registration
To register a Private Limited Company, you need:
- Company Name: Must be unique and approved.
- Directors: Minimum one director (can be non-resident).
- Shareholders: Minimum one shareholder (can be non-resident, individual, or corporate).
- Company Secretary: Must be a local individual or a corporate body with a registered office in Hong Kong.
- Registered Address: A local physical address in Hong Kong (PO Box not allowed).
- Share Capital: Minimum HKD 1 is required.
Step-by-Step Registration Process
- Name Approval: Check availability and reserve your company name.
- Document Preparation: Prepare Articles of Association and KYC documents for directors/shareholders.
- Submission: Submit the application via the Companies Registry's e-Registry.
- Incorporation: Upon approval, receive the Certificate of Incorporation and Business Registration Certificate.
- Bank Account Opening: Open a corporate bank account with a local or international bank.
Fees and Taxation
Registration Costs: Include government fees for incorporation and business registration, plus professional fees for company secretary and registered address services.
Taxation:
- Profits Tax: 8.25% on the first HKD 2 million of profits, and 16.5% on the remainder.
- Foreign Sourced Income: Generally tax-exempt (offshore tax exemption).
- No GST/VAT: Hong Kong does not levy Goods and Services Tax or Value Added Tax.
